Attorney General Tong Joins Multistate Coalition to Defend the Consumer Financial Protection Bureau

Press Releases

02/20/2025

Attorney General Tong Joins Multistate Coalition to Defend the Consumer Financial Protection Bureau

23 AGs Warn Against Efforts to Defund and Shut Down Consumer Protection Agency

(Hartford, CT) – Attorney General William Tong today joined a coalition of 23 attorneys general warning against efforts by the Trump administration and Elon Musk to defund and disband the Consumer Financial Protection Bureau (CFPB). The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. Since its creation, the CFPB has helped millions of Americans by helping homeowners facing foreclosure stay in their homes, stopping banks from charging junk fees, and returning more than $20 billion to the pockets of consumers nationwide. The coalition argues in an amicus brief filed in the U.S. District Court for the District of Maryland that dismantling the CFPB would significantly harm consumers and hamper enforcement of federal consumer protection laws.

“The CFPB was created to stop big banks and lenders from ripping off American families in the wake of the foreclosure crisis. Rent and home prices are unaffordable and skyrocketing, the cost of college is at an all-time high. Junk fees are out of control. This is the worst possible moment to gut the watchdog protecting American pocketbooks,” said Attorney General Tong.

On February 9, the Trump administration directed the CFPB to stop all its ongoing work and to not begin any new investigations. The CFPB was formed in 2011 following the Great Recession to enforce federal consumer protection laws. Since its creation, the CFPB has worked with state attorneys general to address consumer issues related to banking, student loan servicers, mortgage servicers, auto lending, and other consumer financial matters. The CFPB has also partnered with attorneys general to stop deceptive, unfair, and abusive conduct by companies. As a result of the Trump administration's actions, the nation's largest banks are no longer being closely watched for compliance with key consumer protections by any federal regulator.

In their brief, the coalition argues that the administration’s efforts to destroy the CFPB could prevent consumers from reporting issues of fraud or deception. The coalition also writes that efforts to shut down the CFPB would significantly reduce oversight of very large banks, further harming consumers. The attorneys general warn that this may lead to financial institutions loosening their regulatory compliance, as was seen in the years leading up to the financial crisis.

Joining Attorney General Tong in filing today’s brief are the attorneys general of Arizona, California, Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

Twitter: @AGWilliamTong

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Media Contact:

Elizabeth Benton
elizabeth.benton@ct.gov

Consumer Inquiries:

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